CCC Documentation & Record Management 3 — Questions and Answers
Question 1: What does a 'cost baseline' document in project controls, and when is it formally approved?
- It documents the approved time-phased budget and is approved before project execution begins (Correct answer)
- It records actual costs incurred and is updated monthly
- It documents contingency reserves and is approved at project close
- It records vendor invoices and is approved by accounts payable
Correct answer: It documents the approved time-phased budget and is approved before project execution begins
The cost baseline is a time-phased approved budget used to measure, monitor, and control cost performance and is established prior to execution.
Question 2: Which documentation best supports a contractor's claim for extended general conditions costs due to owner-caused delay?
- Daily logs, time-impact analyses, and contemporaneous correspondence linking delay to owner actions (Correct answer)
- Final project cost report and contractor's letter of claim
- Project schedule at completion and final payment application
- Subcontractor invoices and purchase orders
Correct answer: Daily logs, time-impact analyses, and contemporaneous correspondence linking delay to owner actions
Contemporaneous records that establish causation between owner actions and delay-related cost impacts are the strongest evidence in delay claims.
Question 3: In earned value management, what document records the authorized budget for each control account?
- Control Account Plan (CAP) (Correct answer)
- Project Status Report
- Cost Variance Report
- Work Authorization Document
Correct answer: Control Account Plan (CAP)
The Control Account Plan defines scope, schedule, budget, and responsible manager for each control account within the WBS.
Question 4: A Certified Cost Consultant is reviewing project files and finds two different versions of a drawing used for quantity takeoff. What is the CORRECT action?
- Identify the latest issued-for-construction revision and document which version was used in the estimate (Correct answer)
- Average the quantities from both versions to minimize error
- Use the version with lower quantities to be conservative
- Discard both and request a new drawing set
Correct answer: Identify the latest issued-for-construction revision and document which version was used in the estimate
Estimates must reference the latest contractually issued drawing revision, and the specific revision used must be documented to ensure the estimate is defensible.
Question 5: What is the purpose of a document control numbering system on a large capital project?
- To uniquely identify, track, and retrieve each document throughout the project lifecycle (Correct answer)
- To rank documents by importance for management review
- To assign responsibility for document preparation to specific team members
- To estimate the volume of documents for filing cost budgeting
Correct answer: To uniquely identify, track, and retrieve each document throughout the project lifecycle
A numbering system ensures every document has a unique identifier enabling accurate retrieval, revision tracking, and distribution control.
Question 6: Which of the following best describes 'as-built' cost records?
- Final documented costs reflecting actual expenditures after project completion, used for benchmarking future estimates (Correct answer)
- Preliminary cost estimates prepared before design is complete
- Budgeted costs at project inception approved by the owner
- Monthly cost forecasts updated throughout construction
Correct answer: Final documented costs reflecting actual expenditures after project completion, used for benchmarking future estimates
As-built cost records capture actual final costs and serve as historical benchmarks for parametric estimating on future projects.
Question 7: Under FAR (Federal Acquisition Regulations), which cost accounting requirement applies to contractors with significant government contracts?
- Cost Accounting Standards (CAS) compliance requiring consistent cost allocation methods (Correct answer)
- GAAP-only financial reporting with no additional requirements
- Fixed-price contracts require no cost documentation
- All costs must be reported weekly to the contracting officer
Correct answer: Cost Accounting Standards (CAS) compliance requiring consistent cost allocation methods
CAS requires covered contractors to follow specific, consistent standards for measuring, assigning, and allocating costs on government contracts.
CCC Documentation & Record Management 3
What does a 'cost baseline' document in project controls, and when is it formally approved?